
HRD and IT Minister Nara Lokesh announced a historic $15 billion (Rs 1.25 lakh crore) investment by Google to establish India’s largest data center in Visakhapatnam, marking the country’s biggest Foreign Direct Investment (FDI). The project is set to boost Andhra Pradesh’s economy and create significant job opportunities, aligning with the state’s vision for decentralised development, reported The New Indian Express.
Historic Investment in Visakhapatnam
Speaking at a press conference at his Undavalli residence on Wednesday, Lokesh described the Google data center as a landmark achievement for Andhra Pradesh and India. He credited Chief Minister N Chandrababu Naidu’s leadership, stating, “Whether it’s creating history or rewriting it, it’s possible only because of Chandrababu Naidu. Between 2014 and 2019, he brought India’s largest automotive FDI with Kia Motors. Now, Google’s investment will change the face of Visakhapatnam just as Microsoft changed Hyderabad.”
Lokesh highlighted that Google chose Andhra Pradesh over other countries and states due to its business-friendly environment, transparent policies, and proactive governance. “This investment will generate 1.88 lakh direct and indirect jobs and have an economic impact of Rs 48,000 crore on the state within five years,” he said.
Collaborative efforts and policy reforms
The project was made possible through amendments to central laws, facilitated by discussions between Chief Minister Naidu, Union Ministers Ashwini Vaishnaw and Nirmala Sitharaman, and Prime Minister Narendra Modi. Lokesh also acknowledged the contributions of IT Secretary Bhaskar and Karthikeya Mishra in laying the groundwork for this investment.
Decentralised development vision
Lokesh emphasised the state’s commitment to “one state, one capital, and decentralised development.” He outlined a cluster-based approach to foster regional growth, including:
He noted, “With the Chief Minister’s guidance, we have attracted over Rs 12,000 crore in tourism investments, given land for India’s SpaceX-linked startup Scry Route in Amaravati, and advanced renewable projects across the state.” Additionally, Lokesh highlighted that “Fifty percent of India’s air conditioners are now made in AP, and that will rise to 80% as Daikin and Bluestar expand.”
Quantum valley and economic goals
The state is developing a Quantum Valley in Amaravati to support quantum computing industries and defence manufacturing. Lokesh announced, “North Andhra will soon become the state’s growth engine,” with major investors like ArcelorMittal, Google, TCS, Cognizant, Accenture, and pharma companies setting up operations. TCS and Cognizant received land at a token rate of Rs 1 per acre, expected to create 25,000 jobs and generate Rs 15,000 crore in economic activity.
Lokesh compared the Google project to the success of Cyberabad, saying, “When critics mocked Cyberabad, Chandrababu Naidu built it. Today, one lakh people work there. Similarly, Google’s data centre will revolutionise Visakhapatnam.” The state aims to become a $2.4 trillion economy by 2047, with Greater Visakhapatnam envisioned as a $1 trillion economic corridor.
AI and skill development initiatives
To prepare the youth for emerging technologies, Lokesh directed the Higher Education Department to partner with Google, TCS, and Cognizant for AI and digital skills training. The Ratan Tata Innovation Hub in Amaravati is spearheading efforts in research, startup incubation, and advanced training to support this goal.
Inclusive medical education
Lokesh clarified the state’s new Public-Private Partnership (PPP) model for medical education, stating, “Fifty percent of seats in PPP medical colleges will be given free to students from economically weaker sections.” He emphasised that the policy focuses on improving quality, not privatising public assets.
Strong centre-state partnership
Highlighting the success of Centre-State collaboration, Lokesh said, “The state is now an investment-attracting state within just 17 months. The credit goes to the double-engine government, with Prime Minister Modi in Delhi and Chief Minister Chandrababu Naidu in Amaravati.” This synergy has positioned Andhra Pradesh as a hub for global investment and innovation.